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Carillion unsuitable for public work, GMB union claims

Union tells MPs it is writing to clients about contractor’s blacklisting record

GMB blacklisting protestors

The GMB union is writing to public sector clients claiming Carillion’s record on blacklisting makes the company unsuitable for government-funded work, it has told MPs.

GMB officer Justin Bowden told the Scottish Affairs select committee on Tuesday that the union suspects Carillion is still involved in the practice, which was partially exposed when a blacklist of 3,200 people held by the Consulting Association (CA) was exposed in 2009.

The committee, which is examining whether laws on blacklisting should be tightened, also heard allegations from the Unite union that Balfour Beatty Engineering Services (BBES) continues to be involved in blacklisting.

Both firms strongly deny the allegations.

The developments came as the TUC Congress, which begins on Sunday, prepares to raise the issue of blacklisting amid ongoing preparations for two separate High Court cases on behalf of blacklisted individuals.

Bowden claimed 224 of those on the CA’s list were blacklisted by Carillion and that the firm is working on, or tendering for, £2bn worth of public work in Scotland alone.

He told MPs: “There is absolutely no doubt in our mind that Carillion continues to hold information on people…the individual who was responsible for administering the blacklist and the relationship with the Consulting Association, the head of HR Liz Keates, continues to work for the company.

“A public apology is overdue…it seems ludicrous to us that public money should be going to companies that are clearly guilty of this behaviour,” he added.

Building understands that clients written to by the GMB include PPP giant Semperian, which employs Carillion for FM work on the Great Western Hospital in Swindon, and the Gladys Aylward Academy in Enfield, where Carillion is preferred bidder for a £10m construction job.

Carillion hit out at the claims, which it said presented a “grossly distorted and misleading portrait of Carillion insofar as blacklisting is concerned”.

A spokesman said: “It is specifically untrue that Carillion indulges in blacklisting itself or that it condones or tolerate such practices in its supply chain.

“To the best of our knowledge and from our own internal investigation, there was only ever limited use of the Consulting Association’s database by one Carillion subsidiary, Crown House.

“This took place almost ten years ago. Another subsidiary, John Mowlem, made limited use of the database prior to its acquisition by Carillion in 2006. At that time the practice was not unlawful.

“Using the Consulting Association’s database at Crown House was discontinued by Liz Keates, then an HR manager, because she felt uncomfortable with continuing to use a system she had inherited and she therefore chose to end it. “

Unite assistant general secretary Gail Cartmail told the committee that Unite believes that BBES and its head of HR, Gerry Harvey, continue to be involved in blacklisting.

But committee chairman Ian Davidson MP called on the unions to produce written evidence to support their claims.

A spokesperson for Balfour Beatty said it “does not condone the use of blacklists in any circumstances and has taken steps to ensure that none of our companies use such services”.

She said it would not be appropriate to comment further.

Carillion’s statement in full:

A spokesman said: “It is a disgrace that the GMB persists in presenting a grossly distorted and misleading portrait of Carillion insofar as blacklisting is concerned. The union deliberately conflates and confuses different laws and regulations, periods of time and geographies. Everyone needs to treat what the GMB says on this matter with great care.

“To the best of our knowledge and from our own internal investigation, there was only ever limited use of the Consulting Association’s database by one Carillion subsidiary, Crown House. This took place almost ten years ago. Another subsidiary, John Mowlem, made limited use of the database prior to its acquisition by Carillion in 2006. At that time the practice was not unlawful.

“Using the Consulting Association’s database at Crown House was discontinued by Liz Keates, then an HR manager, because she felt uncomfortable with continuing to use a system she had inherited and she therefore chose to end it.

“No unlawful activity ever occurred at any time. It should therefore come as no surprise that Carillion has recently been dropped in one class action related to blacklisting.

“It is specifically untrue that Carillion indulges in blacklisting itself or that it condones or tolerate such practices in its supply chain. Carillion is in no way anti-union: we have positive working relationships – and formal recognition agreements - with a number of unions across the country.”